Does the U.S. import a large share of generic prescription drugs from India?

India supplies nearly half of all generic prescription drugs used in the United States, making it the largest single source. 

In 2022, Indian pharmaceutical companies provided 47% of generic prescriptions filled in U.S. pharmacies, far more than domestic producers or suppliers from Europe and the Middle East. These medicines addressed common needs like those related to mental health, high blood pressure, cholesterol and nervous system disorders. Because of India’s exports, Americans saved an estimated $219 billion on prescriptions in 2022, and $1.3 trillion over the past decade. 

India produces about 35% of the active pharmaceutical ingredients, or APIs, for generics in the entire world. Despite this, most Indian drugmakers rely on China for about 70% of the raw ingredients needed to manufacture these medicines. That dependency leaves the U.S. vulnerable to supply chain disruptions, a vulnerability highlighted by ongoing cancer treatment shortages.